Energy Policy: Energy Policy and Conservation Act Reauthorization
(Testimony, 05/25/94, GAO/T-RCED-94-214).

The government-owned and operated Naval Petroleum Reserve (NPR) in Elk
Hills, California--the seventh largest oil field in the lower 48
states--generated oil sales revenues of $327 million in 1992. The Energy
Department (DOE) sells most of this oil to California refiners through
competitive bids.  The prices received by the government for this oil
have been lower than prices for crude oil in other parts of the country.
GAO concludes that it will be difficult for DOE to boost revenues from
NPR oil sales by selling oil to Gulf Coast or midcontinent oil
refineries because this oil is of lower quality than other available
crudes and shipping costs are high.  This report explores other ways
that DOE may be able to increase revenues.  For example, DOE bills its
customers more often than private oil producers do, resulting in buyers
making lower bids to compensate for the higher administrative costs.
DOE also does not market its oil as aggressively as private producers
do. GAO also discussed (1) the relative priority that should be given to
several options for improving the readiness and expansion of the
Strategic Petroleum Reserve and (2) the evolving mission of the
International Energy Agency.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-94-214
     TITLE:  Energy Policy: Energy Policy and Conservation Act 
             Reauthorization
      DATE:  05/25/94
   SUBJECT:  Petroleum storage
             Fuel supplies
             Emergency preparedness
             Oil resources
             Cost effectiveness analysis
             Facility maintenance
             Petroleum industry
             Petroleum prices
             International cooperation
             Fuel sales
IDENTIFIER:  Naval Petroleum Reserve No. 1 (Elk Hills, CA)
             Strategic Petroleum Reserve
             DOE Life Extension Program
             Bryan Mound (TX)
             West Hackberry (LA)
             IEA Emergency Oil-Sharing System
             SPR
             
------------------------------------------------------------------------

We regret that electronic text of GAO Testimony is not available at 
this time. 

See the GAO FAQ - Section 2.0 for printed copy ordering information.
The FAQ is automatically retrieved with all WAIS search results or 
can be obtained by sending e-mail to: [email protected]